Avoid defrauding in seafood exports

Processing exported seafood. Photo: Thu Hòa

Vinh Hoan Joint Stock Company (Vinh Hoan Corp) is one of the victims of fraud. After nearly 2 years of sales to foreign partners, Vinh Hoan Corp hasn’t claimed the payment of $US 58,800 from Al-Reda Group For Trading and Development Company (Egypt, Cairo, Uboor Market, Fish Corner, Shopes No.4 and 15; Tel: +202447 99060; Fax: +202,447 99 112; Representative: Mr: Hussam Eldein).

Vinh Hoan Corp said that Al-Reda Company purchased frozen pangasius fillets from June of 2015. The total value was $US 58,881.60 (after deducting 10% of deposit, it was $US 6,542.4)

Although Vinh Hoan Corp has sent a payment request several times from July of 2015 to December of 2016, Al-Reda Company avoided making payment with various reasons.

In order to avoid payment for goods not like Vinh Hoan Corp, VASEP sent a warning to enterprises when dealing with that customer and pay more attention when doing business with foreign partners in order to avoid risks in collecting payment .

Not only Vinh Hoan Corp, in recent times, there are some seafood enterprises have been defrauded and are facing the risk of losing hundreds of thousands of dollars because of ECHOPACK INC which was represented by a person named Jason Brown, located at: Francois 5084, Cusson Lachine, Quebec, Canada.

The exported shipments were made payment via GENERAL EQUITY Bank (representing the Echopack Company at Level 4, General Equity House, 17 Albert Street, Auckland 1010, New Zealand), in the form of L / C in 60 days since the issue day of bill of lading and have a food safety certificate of CFIA.

The buyer is Echopack and General Equity Bank have colluded to pick-up shipments and did not make payment. Echopack has the intention to defraud because they took another contract with different signature and signed contract between two companies to open Letter of credit (L/C). While in L/C had inserted clauses that the signature in contract send to General Equity for open L/C must match to the signature in the contract which is attached in dossier for asking money back. When sending documents demanding money under the terms L / C, General Equity knew invalid documents but still allowed Echopark to get the original Bill of Lading to pick up the goods.

About General Equity, they also deliberately did the wrong payment under provisions of L/C payment: L/C is paid at maturity, unless previously buyers inform to the issuing bank about the quarantine is not reached and then the issuing bank will notify by swift to negotiations bank such as: the payment terms of the L / C is 60 days. However, the time of notification of invalid documents has a duration until 40 days. There were reports that General Equity banks in New Zealand has closed since 2014, but still open the L/C and conduct transactions to Vietnam.

VASEP noted seafood enterprises across the country to review, identify and prevent if they have transactions with people, business name, address as above.